Stoke-on-Trent City Council has declared its reliance on hotel rooms to house homeless people is financially unsustainable, after spending more than £1 million on bed and breakfast accommodation in a single year.
Spiralling Costs and Rising Demand
In the 2024/25 financial year, the local authority placed 933 families and individuals into temporary B&B accommodation, a significant increase from 846 the previous year. The gross expenditure reached £1.06 million.
Although a central government subsidy offset some of the cost, the net bill to local taxpayers still amounted to a staggering £850,317. This figure highlights a dramatic escalation in spending over recent years, with the net cost rising from just £90,873 in 2017/18 to £564,786 in 2023/24.
Current spending suggests this year's total could match or even exceed the record sum. By late November, with four months of the municipal year remaining, the council had already spent £573,849 to house 584 households in hotels.
A Search for Better, Cheaper Solutions
Councillor Chris Robinson, cabinet member for housing and planning, stated that the current model is untenable. "Using hotel accommodation just isn't sustainable. We can't keep spending that sort of money," he said.
The council is now actively pursuing alternative, longer-term options to provide better value for money and more suitable living conditions. A plan to secure nightly-paid accommodation through a new framework was paused while the authority explored other avenues.
Councillor Robinson revealed that proposals to lease properties, such as former student flats, on a longer-term basis are being developed. "We're looking at three or four sites around the city. The owners of the buildings have been quite receptive to our proposals. There should be a report coming to cabinet in January or February," he explained.
He emphasised the dual benefit of this approach: "There will be a cost-saving associated with using leased accommodation, but it will also be better for the people. Hotels aren't an ideal place to live, especially for families, and they often don't have any cooking facilities."
Broader Impacts and Statutory Challenges
Local authorities have a legal duty to assist those facing homelessness, which often necessitates emergency short-term housing. While the city council operates its own homeless units—increasing them from 28 to 40 last year—demand continues to outstrip supply.
This pressure has forced the council to breach the statutory six-week limit for housing families in B&Bs due to a critical shortage of alternative accommodation. The situation has also raised concerns about community impact, with issues of crime and anti-social behaviour previously linked to specific hotels used for temporary housing, such as the Sneyd Arms in Tunstall.
Complicating matters further, Councillor Robinson noted that other local authorities are also using hotels in Stoke-on-Trent to house their homeless populations without notifying the city council. "They don't tell us they're doing it, they just go onto the booking website and book a room. But that is going to have an impact on our own local services," he said.
In response, the council is considering a strategy of block-booking rooms and stationing support services within hotels to better manage the situation and provide necessary aid to those placed in temporary accommodation.
